Wholesale Price Index

Definition: Wholesale Price Index (WPI) represents the price of goods at a wholesale stage i.e. goods that are sold in bulk and traded between organizations instead of consumers. WPI is used as a measure of inflation in some economies. Description: WPI is used as an important measure of inflation in India. Fiscal and monetary policy changes are greatly influenced by changes in WPI. In the United States, Producer Price Index ( PPI ) is used to measure inflation.

The Consumer Price Index (CPI) is India's main measure of inflation, instead of the earlier Wholesale Price Index (WPI), since it is a better indicator of price change for goods and services used by the average household. Here's how these differ.

The Consumer Price Index (CPI) is India's main measure of inflation, instead of the earlier Wholesale Price Index (WPI), since it is a better indicator of price change for goods and services used by the average household. Here's how these differ.

Most people use a standard inflation rate of 8% for all financial calculations instead of deploying separate inflation rates in keeping with one's individual goals. Consider the different types of inflations and the manner in which they can affect your financial planning. WHOLESALE INFLATION Wholesale or headline inflation is measured on the basis of the changes in wholesale price index (WPI). Since it is based on the wholesale prices, it...

NEW DELHI: Pressure may be mounting on the Reserve Bank of India from within the country to lower interest rates, but multilateral lender International Monetary Fund has favoured a tighter monetary policy to bring down inflation, even as it has described the country as a "bright spot" in the world economy. After the so-called Article IV consultations with India, the IMF has noted that policy measures to revive investment, reduce inflation, improve fiscal...

NEW DELHI: A day after the presentation of the Union Budget , two key policymakers in the government said the case for easing of interest rates by the Reserve Bank of India had strengthened with inflation slowing and the focus staying on fiscal consolidation. Minister of State for Finance Jayant Sinha and Chief Economic Adviser Arvind Subramanian both see the situation as being ripe for an interest rate cut by RBI. ...

Equities have been feeling the heat of rising inflation over the past few sessions. Unlike debt markets, which track inflation data closely, the stock market normally reacts when there is a significant change in inflation, either ways, over a period of time. We are starting a weekly column where we take you through topics that have a bearing on the market. What is inflation? How is it measured? Simply put, inflation is a rise in prices of several items over a period of time.

NEW DELHI: Pressure may be mounting on the Reserve Bank of India from within the country to lower interest rates, but multilateral lender International Monetary Fund has favoured a tighter monetary policy to bring down inflation, even as it has described the country as a "bright spot" in the world economy. After the so-called Article IV consultations with India, the IMF has noted that policy measures to revive investment, reduce inflation, improve fiscal...

Iron ore is the biggest contributor to inflation, accounting for 70% of the incremental inflation during the week, reports Our Mumbai Bureau With a weightage of 0.21% in the wholesale price index, the iron ore index jumped 188% in the week. Food articles, fruits and vegetables, iron & steel, basic metal alloys also contributed to the rise in inflation.

The Reserve Bank of India on Tuesday unexpectedly raised interest rates , repeatedly citing high consumer price inflation. The central bank has clearly indicated that it will be guided by the Consumer Price Inflation as opposed to the Wholesale Price Index ( WPI ) that had been the benchmark gauge of inflation.

NEW DELHI: Wholesale inflation rose less than expected in December, strengthening the case for a cut in interest rates on February 3, when the Reserve Bank of India will review monetary policy.The recent recovery of the rupee and further softening of global commodity and crude prices have added to the argument in support of a reduction in interest rates to stimulate the economy that faces the headwinds of slower global growth. Inflation based on wholesale...

NEW DELHI: Notwithstanding the marginal rise in December inflation, India Inc today said low oil prices and measures undertaken by the government are likely to keep inflation under check, even as it reiterated the need for an interest rate cut by the RBI to kick start growth. "Given the slow pace of global recovery and expectations of oil prices to remain at low levels going forward, inflation is expected to remain under control," said Ficci President ...

NEW DELHI: Facing persistent calls for interest rate cuts from the government and the industry, Governor Raghuram Rajan today said RBI cannot 'flip-flop' on rates with every rise or fall in the inflation and would rather wait for a stable low price scenario. "The message I have been sending is that we don't want to flip-flop back and forth. This month inflation was 2 per cent, therefore I will cut this much. Oh! it went up to 5 per cent, may be I should increase it....

NEW DELHI: The broad based slowdown in inflation trajectory is likely to continue amid declining global oil prices and the headline WPI inflation is expected to remain range bound at 1.8-2 per cent during November, says a report. "The downward spiral in global crude oil prices along with the base effect has provided some relief to the government which has been struggling to keep the inflationary pressures at bay," Dun & Bradstreet India Senior Economist...

NEW DELHI: Stating that the economy has started improving, Mahindra Group Chairman and Managing Director Anand Mahindra today said the RBI should consider cutting interest rates to boost growth. "It might be time for the RBI to think of a rate cut," Mahindra said here on the sidelines of the India Economic Summit. He added that in the past the central bank hasn't been able to bring down the rates due to high inflation. "The need of the hour has changed and its time...

MUMBAI: Taking a cue from the weak Asian markets, shares fell on the Indian bourses amid concern over a spurt in crude oil prices in the international market. Adding to the market's woes were fears of a further rise in inflation rates, after the government announced a hike in the prices of petroleum products and coal, brokers said. The government, on Friday, announced statistics on the wholesale price index (WPI), which seem to have...

NEW DELHI: Inflation rose to 5.91 per cent during the week ended April 23 as vegetables, fruits, edible oil, industrial fuel and manufactured products became costlier. After remaining static at 5.64 per cent during the week ended April 16, the wholesale price index (WPI) based inflation rose despite efforts by the RBI and government to keep prices stable. Inflation was at 4.32 per cent during the same period last year.

NEW DELHI: The Royal Bank of Scotland today said the economic indicators like softening of inflation suggests that key interest rates could be slashed sooner than later by the Reserve Bank of India . Reserve Bank had kept the key interest rates unchanged while unveiling its fourth bi-monthly monetary policy statement for 2014-15 on September 30. "I think the RBI is a very fine institution and it is their job to take a call on...

NEW DELHI: With crude and commodity prices ebbing and the twin deficits under check, the Reserve Bank should have cut the key policy rate to push investments and boost economic growth, India Inc today said. "By all indications, the twin deficits, fiscal and current account are well under control and core inflation has been trending downwards. While on the other hand, industrial production has been muted. This could have been a good opportunity for...